Rocky Brands' Q2 sales down by weaker outdoor business
14 Jul '06
3 min read
The interest rate on the original $30 million term loan with American Capital Strategies was at an interest rate of LIBOR plus 8.0 percent.
Because of the refinancing, Rocky Brands will incur a charge of approximately $400,000 or $0.05 per diluted share in the second quarter of 2006 relating to the write off of prepaid financing charges incurred in the initial debt agreement.
Mr. Brooks continued, "We are very pleased to have refinanced a portion of our debt at more favorable terms, particularly as the recent rise in interest rates has significantly increased our interest expense versus a year ago. We expect to realize net savings of approximately $1.0 million over the life of the loan with the majority of the savings coming in the next two years."
Rocky Brands Inc is a leading designer, manufacturer and marketer of premium quality footwear and apparel marketed under a portfolio of well recognized brand names including Rocky Outdoor Gear(R), Georgia Boot(R), Durango(R), Lehigh(R), and the licensed brands Dickies(R), Zumfoot(R) and Michelin(R).
marketing@alchempro.com
